Importance of distribution & logistics in e-commerce

Distribution is the process in which products are transferred from the seller to the buyer. If we take the concept to the area of ​​marketing we will talk about logistics as it is a broader concept. This is the area that deals with the processes necessary for the issuance of orders, warehouse management, post-delivery service and any problem that may arise from the process. Next, I will try to discover its main characteristics and its importance in ecommerce.

The most common problems in purchases made through the Internet, according to the AECEM-FECEMD (Spanish Association of Electronic Commerce), are:

Fuente: Aecem-Fecemd)

From the graph, the conclusions are:

  1. Errors in delivery create unsatisfied e-clients and damage the company’s image
  2. Bad logistics can mean the loss of e-clients
  3. The profitability of the sales process is determined by the logistic cost
  4. In order to offer a good service, the supplier must be managed correctly, delivery times, costs and after-sales service

That is why the main demands of current e-clients are:

We can also meet with technological challenges when talking about logistics and e-commerce:

IN STORAGE.

– Order-picking systems must be oriented towards small orders.
– Have a quality shipping packaging (packaging, labels, etc.)
– Agile stock management
– Offer short response times

IN THE DISTRIBUTION.

– Quality in delivery
– Have an emergency service
– Create complementary services: delivery notices, new payment methods …

IN LOGISTICS INFORMATION SYSTEMS.

– Planning of delivery times
– Route planning and optimization
– Tracking systems
– Integrate logistics information systems in the virtual store

Definitely, logistics is one of the most important aspects to have in an account for any company and is a great challenge it comes to the development of e-commerce, because it  opens up business options globally. Therefore, companies must be more demanding with themselves and take into account all the aspects described above to optimize their logistics processes.

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